Tag: #IndianSpaceLaws

Indian Draft Space Activities Bill, 2017

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INTRODUCTION

Numerous legal challenges, from intellectual property protection to space finance, are raised by cross-border investment in private space activities as well as the dynamically shifting nature of space firms. These issues call for legal clarity. As a result of these concerns, states have passed national space laws to handle a variety of problems relating to civilian space activity. A review of extant national space law models finds a lack of uniformity among national strategies.

In response to these various approaches, the International Law Association (ILA) presented a draft Model Law on National Outer Space Legislation (ILA Model Law) in 2012. This was followed by the United Nations Peaceful Uses of Outer Space; Refined by the United Nations Outer Space Treaty. Some states have adopted a purely trade-oriented approach, while others seek to strike a balance between the commercial interests of private actors and the principles of common rights enshrined in that treaty. To reach a certain level of harmonization in the creation of national space laws, the Council discussed this at its 52nd meeting, which took place in 2013.

In terms of space activities, India has advanced remarkably since the start of the twenty-first century. However, because of India’s low-cost operations, the private sector is also demonstrating considerable interest in space investment. India is developing as one of the few states in the league of states to approach celestial bodies. As they must be held responsible and accountable for civilian space activities following the United Nations space treaties, these advances are not without legal complications.

The Outer Space Treaty’s Article 6(3) mandates that States also take on global responsibility for the actions of non-governmental organizations and that these non-governmental actions be acknowledged by States and subject to ongoing oversight. Article VII(4) of the Outer Space Treaty defines responsibility for damage brought on by space activities, whether carried out by a “launching State,” a public or private organization, and this is continued by the Liability Treaty. These elements enable orderly growth, call for statutory regulation of civilian space operations, and unduly harm the public interest by holding States responsible and liable for harms brought on by civilian space activities. managed to avoid.

India has been trying to pass a national space law for almost 20 years. Over the last 6 years, more serious efforts have been made to facilitate discussions at the Indian Space Research Organization (ISRO) level and prestigious law schools such as the NLSIU, Bangalore etc.

ISRO eventually drafted the Space Activities Bill 2017 (Bill) and made it available for public comment in 2017. However, the bill has not yet been approved by the government and is not a legally binding document.

The current COVID-19 situation has severely damaged the Indian economy and the Indian government is developing several initiatives to address this issue and strengthen the economy. Further privatization of the Indian space industry is one of the most important attempts in this direction. The Government of India’s intentions in this area is demonstrated by the recent announcement of the establishment of the Indian National Space Propulsion and Authorization Center (IN-SPACe) to facilitate private sector involvement in space operations.

According to current plans, the space sector will be further commercialized by private companies, allowing them to build their satellite launch facilities in addition to using ISRO launch facilities. Restrictions on foreign direct investment in the space sector have been relaxed, boosting space projects and allowing access to funding from other countries. But for efficient implementation, each of these proposals requires a balanced national space law. Therefore, it is now more important than ever to scrutinize the 2017 bill to understand its limitations and rewrite it to enact comprehensive legislation.1

SIGNIFICANT FEATURES

All Indian citizens are covered, as are all industries involved in space-related activities inside and outside India. The central government grants non-transferable licenses to all persons involved in commercial space activities. The central government establishes the necessary licensing procedures, eligibility criteria, and fees, maintaining a register of all space objects (all objects launched or to be launched on Earth). It oversees the conduct and operations of space activities and provides professional and technical support for commercial space activities. It oversees all India’s space activities, ensures that they are conducted safely, and investigates incidents and accidents that may occur during space activities. Information about the cost of goods made possible by space activities and technology should be communicated to individuals or organizations in a prescribed manner. Those who engage in commercial space activities without a permit face up to three years in prison, fines exceeding $1 million, or both. It also contains rules to protect intellectual property rights generated by space activities.2

IMPACT

The Space Activities Act will significantly strengthen the Indian space industry. The Indian space industry has been constrained for years by a lack of clear and supportive regulations. Geospatial World, in its in-depth look at India’s space startups, found that a lack of funding and open politics means companies have found ways to survive, and in some cases, the ecosystem has been more active than in the past. According to a PwC study, India’s space economy is valued at $7 billion, or about 2% of the world’s space economy. Analysis shows that the Indian space industry needs to expand at a CAGR of almost 48% in the next few years to reach the $50 billion target.

The time has come for policies that allow private companies to reach their full potential. With significant market advantages, such as high demand for space services in areas such as agriculture and financial services, a strong domestic manufacturing base, a rich talent pool, and the ability to leverage IT skills, the Space Activities Act is expected to facilitate such which can play a crucial role.3

CHALLENGES

Despite having the dual goals of regulating and promoting space activities, the draft bill adopts an excessively regulatory approach, viewing regulation as control, through a complex licensing system, giving legally binding instructions, imposing several terms and conditions on the licensee, and asking them to provide information, inquiring into their affairs, and creating a variety of offenses. Alarmingly, this is coupled with the absence of any clause requiring the regulatory authority to be accountable and transparent. According to Clause 26 of the Bill, the Central Government is not liable for anything done in good faith following the Bill and the rules issued under it. Judicial review, a fundamental component of the Constitution, is expressly excluded from the Bill, and this raises severe concerns about its validity. In addition, the proposed Bill merely provides a general regulatory framework that is lacking in many crucial specifics. It suffers from excessive delegation since it grants the Central Government broad authority to make rules without providing much advice on how to use them. A draft bill centred on the concept of licensing includes the authority to specify the qualifying requirements for licensing.

Numerous further issues are found when the draft bill’s substantive sections are examined. First off, it’s unclear how far the Bill will apply. It is stated in clause 1(2) that it applies to aircraft and other airborne vehicles registered in India, which could result in uncertainty about the need for a license for specific aviation activities. In addition, the Bill only applies to Indian citizens and government or private entities registered in India, excluding applications to foreigners and foreign entities. As a result, the application clause must cover all individuals, regardless of nationality, in cases where space activities are carried out in collaboration with foreign persons. Given that space is a major theme, it is unclear why the Act should take effect on various dates in each state.4

LIMITATIONS

The bill’s explanation emphasizes the need for national space legislation to support increased commercial participation in space activities and to comply with the requirements of international space agreements. “The legal environment should be one that only supports the continued growth of the space business in India, not just a regulatory and restrictive regime,” the explanation added, making another suggestion. This strategy parallels how the United States is moving toward full-scale commercialization of space. Such a decision to prioritize economic interests over international treaty requirements is unwelcome.

According to the description, the bill builds on her ILA model law and recognizes different approaches in other states. A careful examination of the drafts reveals that there are also significant differences in the ILA Model Law.5

CONCLUSION

While the bill is a welcome step to boost the space industry, it separates space-based and ground-based activities to address business operations, international obligations, national security concerns, and intellectual property. Protection should allow for the creation of specific laws. To create a competitive ecosystem for the space industry, all stakeholders must be consulted, and the management of the space value chain and its incorporation into legislation must take global best practices into account.6

CITATIONS

  1. Sandeepa Bhat B, A Critique on the Indian Draft Space Activities Bill 2017, Mary Ann Liebert Inc Publishers(16 Mar 2022) Available at: https://www.liebertpub.com/doi/10.1089/space.2021.0042
  2. The Editor, Draft Space Activities Bill, 2017, drishtiias (13 Dec,2018) Available at: https://www.drishtiias.com/daily-updates/daily-news-analysis/draft-space-activities-bill-2017
  3. Avneep Dhingra,Space Activities Bill: What’s the current status; why is it important?,GW Prime(30 July, 2021) Availvable at: https://www.geospatialworld.net/article/space-activities-bill-whats-the-current-status-why-is-it-important-eos/
  4. Ms. Rima Hore,A CRITIQUE OF THE DRAFT SPACE ACTIVITIES BILL, 2017,ASLaltjournal (Last Visited: 28 September, 2022) Available at: https://www.cmr.edu.in/school-of-legal-studies/journal/wp-content/uploads/2021/03/Article-5-1.pdf
  5. Supra note 1
  6. Supra note 2

This article has been written by Jay Kumar Gupta. He is currently a second-year BBA LL.B.(Hons.) student at the School of Law, Narsee Monjee Institute of Management Studies, Bangalore.

Why there is a need for Space Laws in India?

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Introduction

India has accomplished a great deal since independence, and one of its biggest successes is its ability to develop its satellites, launch systems, and ground control technology for commercially launching not just Indian but also foreign satellites. ISRO now holds a monopoly on Indian space activities with the help of various industries, both private and public, providing services on a large scale. ISRO now employs over 17,000 people, and its yearly budget has increased to INR 100000 million (almost US$1.3 billion) from INR 60000 million five years ago1. Just like other industries, the legal industry helped in regulating laws related to outer space. The Constitution of India, 1950, the Satellite Communications Policy, 2000, and the updated Remote Sensing Data Policy, 2011 are the sole legislative frameworks that control India’s space sector.

Legislations Governing Space

Over the last 50 years, the ISRO has been at the forefront of pushing this industry, providing a variety of services ranging from navigation and communications to images, and facilitating a variety of social and economic activities. Although ISRO is considered to be the only governing body, India also has some policies regulating different issues under Space Law which are as follows:

  • Satellite Communication Policy, 19972
    The Satellite Communication Policy of 1997 has as its goals the development of a satellite communications service business as well as the continued use and development of India’s capabilities in the areas of satellites, ground equipment design, and launch vehicles The issued guidelines and norms clarified the policy’s scope and emphasized the use and development of the INSAT network, as well as giving Indian satellites performing other critical functions preferential treatment to promote telecommunications, broadcasting, and meteorological services in India.
  • Remote Sensing Data Policy, 20113
    According to the 2011 RSDP, satellite remote sensing data with a resolution of up to 1m can be obtained by obtaining a license from the DOS, but any request for satellite remote sensing data with a resolution of greater than 1m requires special clearance from the High-Resolution Image Clearance Committee (HIC) due to national security concerns. For the procurement of high-resolution photographs, the Indian government department is exempt from obtaining HIC approval.
  • Technology Transfer Policy
    It is a well-defined and methodical policy for the transfer of know-how of technologies and products generated by Indian Space Centres to Indian companies, as well as their commercial use concerning various space initiatives. To achieve significant industrial participation, it provides services relevant to space systems, such as communications, broadcasting, geospatial information, and manufacturing satellites and their components. It also allows for the licensing of technological know-how from various ISRO centers; as a result, about 300 technologies have been transferred to domestic companies too far.
  • Indian National Space Promotion and Authorisation Centre (IN-SPACe)4
    The Indian National Space Promotion and Authorisation Centre (IN-SPACe) was authorized by the Union Cabinet on June 4, 2020, to offer a fair playing field for private market firms to exploit Indian space infrastructure. It intends to give the private sector a much-needed boost by assisting, advising, and encouraging private industry engagement in space operations through a rigorous and favorable regulatory system. Greater access to ISRO infrastructure, satellite data, facilities, scientific and technological resources, and other space assets would promote the socio-economic utilization of India’s space resources and expand space-based activities.

Significance of Indian Space Laws

In terms of launching prowess, India’s transition from reliance to self-sufficiency might make it the world’s launch pad. Other governments and multinational corporations have entered into official agreements with India to help them in their different space initiatives and launch satellites for them due to India’s cost-effective space programs. As a result of the introduction of commercialization, domestic laws such as contract, transfer of property, stamp tax, registration, insurance, and, most crucially, intellectual property rights must be revised to account for space-related difficulties. India is currently going slowly toward enacting accurate space legislation. The Space Activities Bill 2017 has been developed and is currently awaiting Parliamentary approval. By permitting commercial and non-governmental organizations to participate in space exploration, this measure would encourage, support, and regulate space operations in India.5

A manufacturing flaw in a spacecraft leaves it vulnerable to cyber-attacks and/or monitoring, resulting in a loss of personal privacy and data. To guarantee that proper cyber security measures are in place, rules and regulations following data protection laws must be developed.

Awais Ahmed, CEO of Pixel, which raised $5 million in seed funding in August said “India has many advantages in space technology, Indian companies will spend less both in terms of manufacturing and operating costs as compared to US companies, we have an enormous talent pool of engineers that we can tap into, and the VC ecosystem is warming up.” The rising global worry over space debris has even reached the United States. India is embroiled in an international controversy over debris from an Indian satellite that fell on a Japanese hamlet as it retraced its path back to Earth. India has a definite obligation to pay compensation for damage induced by its space object on the surface of the Earth or to aircraft in flight as a party to the 1972 Convention on International Liability for Damage Caused by Space Objects.

Concluding Observations

Indian space science has a lot of potential in establishing a strong connection with India’s Economic growth by adopting effective measures and upcoming policies which are going to change the perspective of the world on India’s Space Laws. Resilience in the space law is all the more important to support the expansion of the Indian space sector and allow private companies to participate in making India a space powerhouse. In line with Articles 51 and 253 of the Indian Constitution, India must enact legislation that would not only enable public-private partnerships and quick technical growth but also accelerate indigenization and manufacturing within the country. Also, the introduction of the India Draft Space Law Policy will widen the scope of development by allowing for the issue of a non-transferable license to individuals involved in commercial space activities. It also specifies appropriate licensing systems, eligibility requirements, and license prices.

References
  1. Department of Space, Indian Space Research Organisation. https://eproc.isro.gov.in/home.html
  2. Satellite Communication Policy in India, 1997. https://www.isro.gov.in/sites/default/files/article-files/indias-space-policy-0/satcom-policy.pdf
  3. Remote Sensing Data Policy, 2011.https://sarinlaw.com/wp-content/uploads/2020/10/Remote-Sensing-Data-Policy.pdf
  4. Department of Space, Indian Space Research Organisation https://eproc.isro.gov.in/home.html
  5. Department of Space, Government of India. https://prsindia.org/billtrack/draft-space-activities-bill-2017

Written by Hemant Bohra student at School of Law, Lovely Professional University, Punjab.